Sensex, Nifty end lower amid massive IT sell-off
Mumbai, June 19
Both the Indian indices ended lower in Friday's session as IT shares dropped sharply following dismal sales and top-line outlook from their global peer Accenture.
At the closing bell, the 50-share index Nifty was at 24,013.10, down by 155 points or 0.64 per cent. The Sensex followed suit and fell 0.78 per cent or 608 points to 76,802.90.
Commenting on Nifty technical outlook, experts said that the 24,100-24,200 region continues to act as the immediate resistance zone.
"A sustained breakout above this band would strengthen bullish momentum and could pave the way for an advance towards the 24,400 region, which remains the next significant resistance area," an analyst stated.
"On the downside, the 23,900 level remains a crucial immediate support. Holding above this zone will be essential to preserve the broader recovery structure and maintain the positive undertone," the analyst mentioned.
Infosys, TCS, Tech Mahindra, HCl Tech and Mahindra and Mahindra were among the top losers in the Nifty index.
Infosys led the losers' pack on Sensex, followed by TCS, HCL Tech, Tech Mahindra, HFC Bank and Mahindra and Mahindra.
However, broader markets blocked the trend and ended higher as the Nifty MidCap and the Nifty SmallCap indices settled 0.22 per cent and 0.42 per cent higher, respectively.
Sectorally, the Nifty IT tanked the most. The Nifty Realty, the Nifty Auto, and the Nifty Oil & Gas also underperformed. The Nifty Pharma rose the most.
"Going forward, investors will closely monitor FII flows, monsoon progress, crude oil prices and management commentary from key corporates, particularly Reliance Industries' AGM, for further market direction," the analyst noted.
Meanwhile, Rupee traded marginally stronger with gains of around 7 paise near 94.31, as recent weakness in crude oil prices continued to support the domestic currency.
"Technically, the rupee is expected to trade within a range of 93.90-94.65, with the current positive trend keeping the possibility open for a test of the 94.00 level in the near term," the analyst mentioned.
— IANS
Reader Comments
Honestly, ye IT sector ka downfall expected tha. US recession ki baatein aur Accenture ka weak guidance pehle se hint de raha tha. Lekin Nifty ka 24,000 support aaj bhi held on strong hai. HDFC Bank aur Mahindra ko bhi beech mein ghasit liya gaya. Pharma sector ka upmove achha sign hai diversified portfolio ke liye.
Main toh kal hi Infosys bech diya 🤦♀️. Technical analysis ke hisaab se 24,100-24,200 resistance zone clear nahi ho paya to exit hi better tha. Ab 23,900 par stop loss rakhna hoga. Par realty aur auto ka bhi performance weak hai. Monsoon season mein pharma ko lena chahiye kya? Koi suggest karein?
It's interesting how Indian markets remain resilient despite global headwinds. The IT sell-off was expected given Accenture's numbers, but I'm watching the Nifty Pharma rally. Also, the rupee staying strong near 94 despite crude volatility is a positive sign for imports. FII flows will be key next week.
Ek baat toh clear hai - IT index ka downfall lagbhag 2.5% tha jo ki bahut bada hai ek session mein. TCS aur Infosys ka weightage Sensex mein zyada hai isliye index gira. Lekin broader market ka upmove dikhata hai ki retail investors confident hain. Mujhe lagta hai ki Reliance AGM se market ko direction milegi.
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